Friday, March 13, 2009

powered by Splicd.comI love this scene from the 1996 movie Swingers. I often use it as an example of digging a hole for oneself. When Trent is asked what he does, he replies "I'm a Producer", the girls say "Cool", and that's the end of that.

Wednesday, March 11, 2009

This post contains some of the ideas that I believe in, and is very articulately written.

We anticipated the Fed would inflate beyond all precedent in an attempt to stabilize nominal asset prices and make creditors “whole,” yet we have been unable to hide our outrage as this policy has now begun to accelerate. Our view is this: we intend to knock it out of the park owning investments highly correlated to monetary inflation and we intend to keep expressing this strategy’s cynical rationale loudly and publicly to anyone who will listen in an attempt to expose the fraudulent, unsustainable monetary system from which we intend to profit.

It's interesting that there's a lot of talk of deflation in the media (almost as a way of distracting people from discussing inflation). I agree with these guys that inflation has to kick in. "investments highly correlated to monetary inflation" - Gold. Also, real estate funded with a 30 year fixed mortgage (at remarkably low rates right now) - liability stays constant, and asset appreciates with inflation, meaning equity increases.

Perception is indeed reality (at least in the short term). We’ve been conditioned to think that the wrong stuff is reality. Go to your window and look outside. Do you see the same buildings as yesterday? What about the supermarket – same groceries? And the gas station – same gas?

The real assets within US borders are unchanged. There are the same houses, factories, machines, airplanes, offices, land, gold, roads, cars, commodities. The question is to decide how that is distributed among people.